Rate of Utah Bankruptcy Filings Increasing Dramatically
Utah received some bad news this month: bankruptcies continue to rise. Utah is already one of the nation’s leaders in bankruptcy filings and things do not seem to get any better (in spite of what the government keeps telling us). In fact, nearly 14,000 people have filed for bankruptcy protection in Utah already this year.
Bankruptcies in Utah continued to rise through the first 9 months of this year. Some believe the number of people in Utah filing for bankruptcy in 2010 would never meet the unprecedented numbers who filed last year. However, this has not been the case. Bankruptcies in Utah climbed 27 % higher than last year; at least that is the trend for the first 3 quarters of this year. This is especially interesting when compared to the national average which climbed only 11 % higher than last year.
So far this year, nearly 14,000 individuals have filed for bankruptcy in Utah and well over a million nationally. Many of those individuals have filed because of soaring credit card debt, unpaid medical expenses, or because they were about to lose their home. The majority of the bankruptcy filings in Utah have been Chapter 7 (about 2/3rds of all the bankruptcies). Chapter 7 bankruptcies are often the most favored chapter because it allows people to discharge most or in all of their debt, giving them a fresh start.
Even though Utah has above average income rates its bankruptcy filings per capita outpaces most of the country. There can be a number of reasons for this but a couple of factors are that Utahns have more children than most of the country and a large portion of Utahns voluntarily contribute a large amount of their income to churches and charities out of religious duty.
Bankruptcy is often viewed as a late indication of a struggling economy because bankruptcy often reflects a change in financial circumstances which occurred months or even years before. Utah in particular has been lagging in the recession. This is common since the national economy often doesn’t affect the local Utah markets until several months later. Many believe that Utah is just now really starting to feel the effects of the national recession. As a result, more people in Utah may be filing for bankruptcy in the next few months to come than ever before.
Additionally, Utah is unique because of the services available in the state to file bankruptcy for a relatively affordable price. Some bankruptcy law firms in Utah such as the Salcido Law Firm are able to provide highly skilled bankruptcy services at a rate struggling families can actually afford.
Bankruptcy – A Result of Many Causes
In our experience our bankruptcy clients are honest people who have been hit with hard times. Many of our clients have been hit with enormous amounts of medical bills or other debts which simply could not be avoided. We also have many clients who funded business ventures with credit card debt. We have also provided bankruptcy services to victims of identity theft where someone stole their credit cards and ran up tens of thousands of debt on those cards. There are a variety of causes that can lead to bankruptcy. There are also people who have not acted responsibly and have lived beyond their means.
Salcido Law Firm’s Utah Bankruptcy Lawyers Can Help
Whatever the cause of your need for bankruptcy protection our experienced bankruptcy attorneys are here to help. If you want to meet with a bankruptcy lawyer call us today and we can get you in for a same day consultation. You will see that we can get the process going immediately and help you gain some debt relief so that you can move on with your life and start fresh.
Call us at 801.413.1753 or email us by clicking here.